On 12 November 2020, the Australian Treasurer, the Hon Josh Frydenberg MP, and Her Excellency Dr Sri Mulyani Indrawati, Indonesian Minister of Finance, announced a Loan between Australia and Indonesia.
Recognising the Comprehensive Strategic Partnership and the strong friendship between Australia and Indonesia, the Australian Government will provide an AUD1.5 billion loan to Indonesia, repayable over 15 years. This loan supports the Asian Development Bank-led COVID-19 Active Response and Expenditure Support Program.
COVID-19 poses an unprecedented challenge to the Indo-Pacific and the world. Both our nations have been affected by this extraordinary crisis as containment measures and uncertainty have depressed global economic activity and international trade.
The Loan will be used to support Indonesia’s budget financing for 2020 which is focused on managing the COVID-19 crisis and economic recovery programmes.
The provision of the Australian Government loan to Indonesia reflects the extraordinary times which we all must face together and is in recognition of Indonesia’s record of sound fiscal management which has allowed the Government to respond to COVID-19 health crisis.
Indonesia’s recovery and ongoing prosperity is critical to the stability and security of our region.
The loan builds on our highly valued economic relationship and strong record of bilateral cooperation. Australia and Indonesia are neighbours, friends and Comprehensive Strategic Partners, and we are committed to supporting one another through this crisis.
Our governments will continue to engage and share our experiences as we move towards economic recovery in the region.
I am delighted to be here today with my colleague and friend, Ibu Sri Mulyani, Indonesian Minister of Finance.
Our commitment to working together as ministers, underscored by our mutual respect, will help to build a prosperous, vibrant and stable region.
COVID-19 has had a devastating impact on the world.
Both of our nations have felt this impact and have experienced record economic contractions since the start of the pandemic.
The impact on businesses, livelihoods, and jobs cannot be understated.
The health and human cost of this pandemic is our greatest shared concern and our responses have been unprecedented.
Our two governments, led by Australian Prime Minister Scott Morrison and Indonesian President Joko Widodo have focused on protecting our citizens from the worst of the pandemic, developing programs to provide critical fiscal and monetary support to lives and livelihoods.
In these challenging times, the strength of the relationship between Australia and Indonesia is more important than ever.
This relationship is more than just our trade and economic ties, which are significant, it is the people to people links and the true friendship that underpins our collaboration.
We are confronting this crisis as partners, and because of this we will recover, together.
We should all be heartened by the global commitment to cooperation, including through the G20, and to the commitment to an equitable distribution of any successful vaccine.
It is in this spirit of partnership that we today announce an A$1.5 billion bilateral loan from the Australian Government to the Indonesian Government.
This loan reflects the extraordinary times which we all must face together and is in recognition of Indonesia’s record of sound fiscal management. Indonesia’s strong and quick recovery is critical for not only Indonesia but for Australia and our region.
I also thanks the Australian Treasury and Indonesian Ministry of Finance officials for their assistance in preparing this Loan Agreement and our Ambassador to Indonesia Mr Gary Quinlan who is here with me today.